My sister-in-law is such a sweetheart. Every year, she subscribes to the magazine "Fast Company" and she gets two free subscriptions with her package.
For several years she has put my sister and I down as the recipients of those free subscriptions. Pretty nice, huh?
I set the magazines aside as they come in and when I have some free time I go through the articles that intrigue me the most but the latest issue had one I read as soon as I went
through the mail the day it showed up.
The title was "Special Report - Retail in the Age of Amazon".
The focus of the article was what the future looks like for retailers as Amazon continues to grow and dominate retail shopping, how some competitors are getting squeezed out, and the creative ways in which competitor retailers can succeed.
The article says the US is about to
experience a record number of brick and mortar store closures - more than were seen during 2008 when the economy took a header off a large cliff.
Some retailers simply haven't been able to stay ahead of Amazon.
Amazon Associates will be thrilled that Amazon's share of online sales is projected to grow - as long as they have an affiliate program there's a way for us to get in and make money through that program.
But it also makes you think:
- What will competitors have to do to survive?
- What allows a brick and mortar store to remain attractive in today's environment when so
much of our time is spent online?
- How can we use that information to our advantage?
My first thought is that the stores that are struggling the
most probably need more help from affiliates. That means new opportunities or commissions may open up from some of Amazon's competitors. It's always good to periodically check for new affiliate programs that may have opened in your niche.
Second, there are some brands that are holding
their own because they use the internet to build a relationship with their customers.
Retailers who stay in touch with their customers through email (sending flyers, sending coupon offers, have a reward program) have an effective method of keeping their name in front of their customer base.
Not only does this reinforce for us, as affiliate marketers, that staying connected to your customer base through email is still effective, but it also helps us identify retailers that have a better chance of continuing going forward.
If you're looking for a retailer to promote with affiliate links other than Amazon you might be best off choosing strong brands that do a great job of staying connected to their audience online and through email.
Third, there are some industries that are struggling the most when it comes to in-store sales - consumer electronics, teen apparel, footwear, and women's apparel. I have to assume that means that more of these sales have been moving to online transactions. That helps us, as affiliates, understand potential growth areas. Maybe we should be promoting more clothing items from Amazon?
However, there are other changes taking place that might negatively impact affiliate efforts in clothing on Amazon. Did you know that Kim Kardashian is launching an app that will allow someone to take a screenshot of something they see online (even on sites like Pinterest and
Instagram) and get directed to the store at which they can buy the clothing featured in the image in their screenshot?!
Talk about taking affiliate marketing to a whole new level! So, even if you are a major influencer in the clothing and fashion industry, have a massive website with clothing
recommendations and affiliate links, and have a huge following, you could end up losing affiliate sales because Kim came up with a cool app. (Do a search in Google for details on the Screenshop app.) Obviously, we need to stay on top of changes like these in our niches.
Fourth, the things
that will help retailers survive Amazon's growth may be things that we could also use in our own websites. Retailers can do several things that Amazon can't do. They can offer products that one can't find on Amazon. Walmart, for example, works with brand name manufacturers for private label versions of some products that are only available through Walmart.
Retailers can also provide an "experience" that can't be found on Amazon.
There's an outdoor shopping mall near my house and they are growing like crazy. Whole areas that were once nothing but surrounding
fountains, parking, and farm land have been wiped clean in order to build up new retail stores.
Why is that area growing when so many retail stores are projected to close this year? It's because the outdoor area includes restaurants, the football stadium, a movie theater, a discount outlet
mall, and an eclectic set of stands that offer merchandise you can't find online. You can spend a full day there and not experience everything that location has to offer. You can't get that at Amazon.
What does that mean for us?
Well, it tells me that if your website can offer an experience not found on Amazon, you may be able to build yourself quite a regular audience.
Make your
website stand out, offer advice and information that can't be found on Amazon, become the industry expert in your niche, become the "personal shopper" for folks in your niche, find things they can't find for themselves, really dig into your niche to understand the wants/needs/trends of the target audience, put them in touch with products they should want but don't know they want due to lack of knowledge or experience, figure out your site's "reason for being", etc. Be a GIVER for your
audience and the money will follow.
I think there's a lot of great stuff in store for affiliate marketing in the future. Just throw a little creative energy into really defining your site's purpose and stay in touch with industry trends. You'll find new doors are opening all the
time!
Thanks!
Sincerely,
Erica Stone
erica@extremereviewer.com
